The House of Representatives will soon vote on a new sustainable growth rate bill, which could cost $500 billion by 2035, according to a Committee for a Responsible Federal Budget blog post.
Here are five things to know:
1. The Congressional Budget Office scored the SGR reform bill under consideration in the House today, saying the legislation would increase the federal deficit by $141 billion over the next 10 years.
2. The impact on the deficit is expected to increase in the second and third decades after the legislation, leading to the rough estimate of $500 billion by 2035.
3. Under CBO estimates, spending increases in the legislation to total $210 billion in the next 10 years and only about $70 billion of this would be off-set by:
• Provider reductions
• Increased Medicare premiums means testing
• Minor reforms
4. Savings could grow in the second decade, but still likely wouldn't cover costs, according to the report. The CBO reports the savings would barely offset additional costs beyond a payment freeze.
5. The committee estimates roughly $600 billion of primary spending increases will be necessary for the bill over the next 20 years.